Mortgage on a Castle

Here are some key reasons people choose to buy a castle in the United Kingdom:

Investment Opportunity

If you're looking for a unique investment opportunity, buying a castle in the UK can be a great option. Not only are castles a symbol of British history and culture, but they also offer a number of practical benefits. For instance, castles are typically located in scenic areas, which can make them perfect for luxury tourism.

In addition, because castles are large buildings with considerable land, they can easily be converted into apartments, hotels, luxury rented accommodation or event venues. With the right care and attention, a castle can be an excellent source of income and a lasting investment. This means buying a castle in the UK is worth considering if you're looking for an unusual and potentially profitable investment.

Restoration Project

If you're the type of person who enjoys taking on challenging projects, buying a castle in the UK can be a great option. Restoring a castle to its former glory is no easy feat, but it's an immensely rewarding experience. Not only will you get to breathe new life into a historic building, but you'll also have the satisfaction of knowing that you're the one responsible for its upkeep. By restoring a castle, you'll be preserving a piece of British history and culture. Plus, if you're looking to re-sell your castle later down the line, you’ll likely generate a healthy return on investment.

Versatile Uses

In addition to being luxurious and imposing, castles also offer a number of practical benefits. For instance, they typically have large grounds, which can be perfect for hosting events or starting a business. And, because they're such unique properties, castles often come with a number of fascinating features like secret passages, hidden rooms, and historic artefacts, which you can turn into any use you'd like. The possibilities are endless with these one-of-a-kind properties, meaning you can make the most of it however you see fit.

In the UK, castles can range from £600,000 to £6 million or more. Of course, the price of a castle will depend on its size, location, and condition. If you're serious about buying a castle, it's important to do your research and budget accordingly. Scotland is a particularly good place to find castles for sale, as there are a number of historic properties on the market. Plus, the price of a property in Scotland is generally lower than in other parts of the UK, so you may be able to get more for your money.

Europe is home to some of the most iconic castles in the world and many of these are available for sale. In France, for example, you can purchase a 12th-century castle for around €500,000. In Italy, there are several medieval castles on the market for around €800,000. If you're looking for a truly luxurious property, buying a castle in Europe could be the perfect option for you. Bear in mind, though, that the renovations on these properties can often be very costly even with the lower acquisition cost.

Castles are considered non-standard construction buildings, which includes any building type that does not meet the definition of conventional construction with stone or brick walls, and a tile or slate roof.

Castles are designated as listed buildings, just like any property built before 1840. There are several levels of listed buildings, each with its own set of consequences for mortgage approval. Grade l refers to "buildings of exceptional interest," which many castles fall under. Due to the risks that Grade I constructions may pose; many lenders refuse to finance them. This is mainly due to the ageing and potential unsafe condition of the building, saleability and/or habitability concerns.

All of these factors combined can make it difficult to find a mortgage lender who is willing to provide finance. However, there are now a number of specialist lenders who consider lending on castles, so it's worth shopping around to see what options are available. Use an independent mortgage broker such as John Charcol, with access to the whole market. This means we can find specialist lenders able to provide you with a mortgage, even if your castle presents criteria that make it difficult to mortgage.

When applying for a castle mortgage, you'll need to provide the same documentation as you would for any other property, including proof of income, employment history, and credit score. In addition, you’ll need surveyors to assess the property and provide a valuation. This is because castles can be difficult to value due to their unique nature, so lenders will need extra reassurance that the property is worth the amount you're borrowing. Plus, lenders will need to understand the extent of repairs that may be needed, as this will affect the amount they're willing to lend.

When you take out a mortgage on a castle, you'll also need to have a larger deposit than usual, as castles are considered to be high-risk investments. You can also often expect to pay a higher interest rate on your mortgage, as lenders will view you as a higher-risk borrower.

If you're considering buying a castle, one of our specialist mortgage advisers can help you navigate the process. By working closely with a market-wide range of providers, brokers can help you find a competitive mortgage that meets your needs.

All in all, buying a castle can certainly be a daunting task, but it's definitely possible with the right mortgage. Make sure you do your research and speak to an independent broker such as John Charcol to get the best deal possible on any type of home.

Don't forget to consider all the factors that come with owning, renovating and running a castle. With a little consideration and planning, you can make your castle dream a reality.

Want more information on the process of buying a property? Check out our comprehensive house buying guide. We have a team of specialist advisers who are experienced in helping people purchase unusual properties such as castles, so we can make the process as smooth and stress-free as possible. Contact us today to find out more.